WestJet initiates quarterly dividend and announces normal course issuer bid

WestJet Airlines Ltd. (WestJet) is pleased to announce that the Toronto Stock Exchange (TSX) has accepted its notice to make a normal course issuer bid to purchase outstanding common voting shares and variable voting shares on the open market in accordance with the rules of the TSX.

Additionally, WestJet is pleased to announce its intention to pay a quarterly dividend.

"Our shareholders have been loyal and supportive of our growth over the years," said Gregg Saretsky, WestJet President and CEO. "We are pleased to announce our dividend and share buy-back program and provide our shareholders who continue to believe in our low-cost, high-value airline with an even greater return on their investment."

WestJet declared its initial quarterly dividend of $0.05 per common voting share and variable voting share, to be paid on January 21, 2011, to shareholders of record on December 15, 2010. "Our business model and our ability to consistently generate significant positive cash flow give us the confidence that we can maintain a healthy balance sheet while providing the necessary flexibility to fund our strategic objectives and growth plans," concluded Gregg Saretsky.

All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.

As approved by the TSX, WestJet is now authorized to purchase up to 7,264,820 common voting shares and variable voting shares, representing approximately five per cent of WestJet's currently issued and outstanding shares under the normal course issuer bid. On any trading day, WestJet will not purchase more than 117,583 shares. As of today's date, there are 139,727,125 common voting shares and 5,569,285 variable voting shares issued and outstanding.

WestJet is authorized to make purchases during the period of November 5, 2010, to November 4, 2011, or until such earlier time as the bid is completed or terminated at the option of WestJet. Any common voting shares or variable voting shares WestJet purchases under this bid will be purchased on the open market through the facilities of the TSX at the prevailing market price at the time of such transaction. Common voting shares and variable voting shares acquired under the bid will be cancelled. TD Securities Inc. will be appointed as the broker firm responsible for making purchases of shares under the bid on behalf of WestJet.

WestJet believes that, from time to time, the market price of its common voting shares and variable voting shares may not reflect their underlying value. At such times, the purchase of common voting shares and variable voting shares for cancellation may be advantageous to shareholders by increasing the value of the remaining shares. The purchase of shares will also offset the dilutive effect of the issuance of shares pursuant to WestJet's compensation plans.